Create an account
modern focus in finance has been on
1) Risk-return relationships
2) Maximization of return for risk
3) Portfolio management
4) Capital structure theory
3 things significant to financial managers during decision-making
1) Effects of inflation/disinflation on financial forecasting
2) Required rates of return for budget decisions
3) Cost of capital
3 functions of a financial manager
1) Allocate funds to current and fixed assets
2) Obtain the best mix of financial alternatives
3) Develop an appropriate dividend policy within the context of the firm's objectives.
advantages of sole proprietorship
simplicity of decision-making and low organizational/operational costs
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